U.S. government debt prices fell into the red on Wednesday.
The yield on the benchmark 10-year Treasury note was higher at around 3.221 percent at 5:10 a.m. ET, while the yield on the 30-year Treasury bond was in the black at 3.386 percent. Bond yields move inversely to prices.
Markets around the world continue to keep a close eye on the bond markets this week, as U.S. bond yields continue to extend gains. After the long holiday weekend, Tuesday saw the benchmark 10-year Treasury yield notch a fresh seven-year high during trade, before paring its gains.
The 30-year bond yield also reached its highest point since 2014. Concerns surrounding rising interest rates continue to keep investors on edge, as market participants debate what this could mean for the domestic economy and monetary policy going forward.
On Wednesday, bond investors will be paying close attention to the latest economic data, to see if it shifts market sentiment.
First off, mortgage applications are due out at 7 a.m. ET, followed by producer price index (PPI) figures at 8:30 a.m. ET and wholesale trade at 10 a.m. ET. The PPI figures, a key gauge of underlying producer price pressures, are typically releases that are closely watched.
On the auction front, the U.S. Treasury is set to auction $36 billion in three-year notes and $23 billion in nine-year and 10-month notes. No size announcements are scheduled.
On the central bank front, a slew of speeches are scheduled to take place. Chicago Fed President Charles Evans will be in Michigan at the Flint & Genesee Chamber of Commerce luncheon; while in Georgia, Atlanta Fed President Raphael Bostic is set to make an appearance at a National Association of Corporate Directors event in Atlanta.
Elsewhere, investors will be bracing for any news out of the U.S. administration, as the midterm elections – due in November – draw closer.